ABM Industries (ABM) Q4 2003 earnings summary

Executive summary

• FY2003 sales and other income rose to $2.262B from $2.068B; continuing income fell to $36.4M from $44.1M, while net income reached $90.5M, boosted by a $51.5M after-tax gain on sale of a discontinued operation.

• Facility services spanned janitorial, parking, engineering, security, lighting and mechanical services, with more than 64,000 employees and operations across the U.S. and British Columbia.

Financial highlights

• Sales and other income were $2.262B in FY2003 versus $2.068B in FY2002; FY2002 included a $10.025M insurance-claim gain in addition to sales and other income.

• Income from continuing operations was $36.398M versus $44.058M; net income was $90.458M versus $46.728M, including the after-tax discontinued-operation sale gain in FY2003.

• Cash provided by continuing operating activities fell to $53.720M from $100.020M; cash and equivalents rose to $110.947M from $19.416M.

Outlook and guidance

• Forward-looking risks included occupancy and rental-rate declines, rising costs that cannot be passed through, customer financial distress, and competitive pressure on profitable bidding and pricing.

• Weak airline travel or hospitality could weigh on Parking; continued customer capital-investment slowdown could affect Lighting and Mechanical sales.